You have a heck of a lot more then four outs, you only have four outs to improve your hand. Your hand doesn't need improvement, you just have to hope he doesn't hit one of his eight outs for the straight or running two pair or trip sevens. After the turn he has eight outs, you were the favorite after the turn. However most people wouldn't call it a bad beat because if you both went all in pre flop he would be like 60/40 to win the hand if i remember right, at best 55/45.
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