No reads on sb (new to table), UTG somewhat loose passive, bet/raises w/ top pair or better, calls down otherwise. CO loose aggressive, bluffs too much.

.25/.50 Hold'em (5-handed)
Preflop:
Hero is bb with 10 10

UTG calls, CO calls, Button folds, SB calls, Hero raises, UTG calls, CO calls, SB calls

Flop:
(8 sb) (4 players) A K 2
SB bets, Hero folds

Crappy flop for me. If SB checks, I probably bet/call, fold turn UI.
I assume SB to be loose passive until proven otherwise, and give him credit for either the A or K. I realize that it could be the flush draw/ bottom pair/straight draw betting out, but having two people to act behind me I just fold.

Is folding here bad?

it's better than calling
I'd raise to try to knock out the other 2 and possibly see if SB is josh'n. Call a 3-bet ( )
and see if we improve on turn.
You might get a free card

folding's not horrble, especially if UTG and CO tend to paly big cards and don't go away easily

I fold here without a second thought.

Yeah, folding is never a huge mistake in this case. Someone betting into a preflop raiser when overcards hit is generally trouble.

I spew.

I suck with QQ-TT lately.

If there weren't so many players I would raise that bet, but here I fold.

That's it exactly. Heads up you can raise/call the flop and check/fold the turn. Against 3 opponents, you know someone hit an AKx flop, and you know even a weak K is planning on calling down at this limit. You have 2 outs to win, and no chance to steal.